11 Corporate governance Flashcards Preview

F8 Audit and Assurance > 11 Corporate governance > Flashcards

Flashcards in 11 Corporate governance Deck (6)
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1
Q

What does corporate governance mean?

A

Corporate governance is the means by which a company is operated and controlled.

2
Q

What is the aim of corporate governance?

A

Is to ensure that companies are run well in the interests of their subsidaries, employees and other key stakeholders

3
Q

What are the advantages of following good corporate governance principles?

A
Greater transparency 
Greater accountability
Efficiency of operations
Better able to respond torisks
Less likely to be mismanaged
4
Q

How should an audit committee be made up?

A

Minimum 3 non-executive directors, with one with financial expertise and independant of operational management

5
Q

What are the objectives of the audit committee?

A

Increase in public confidence, provide financial awareness and strengthen independance

6
Q

What is the function of the audit committee?

A

Monitor financial statements, review controls, monitor and review internal audit and monitor independance of external auditor.